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Comprehensive essay on swot analysis
Comprehensive essay on swot analysis
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Executive Summary The purpose of this report is to conduct a SWOT analysis for McDonald’s Australia Holdings and the introduction of their new range of healthy products such as muesli, yoghurt and fresh juices. The basis of this report is built upon findings from many sources such as newspaper and academic journal articles, company and industry reports that suggest there is a gap in the market for more health conscious meal options. With the appropriate product, this is a market that McDonald’s Australia can capitalize on and become an innovator in a market that has a demand that has not been met. Introduction McDonald’s chain restaurants are of large succession over the world. The first McDonald’s store was opened in America in 1955, with the first Australian store being opened sixteen years later in 1971 in Sydney suburb, Yagoona, with now over 900 stores and 9000 employees and controlling 15% of the market (IBISWorld 2013) in Australia alone. Since the first store opening, McDonald’s has continued to be an innovator in the fast food industry with concepts such as Drive Thru and McCafe assisting McDonald’s in cementing its place as one of the market leaders in an industry with such a widespread demand. McDonald’s prides itself on its ability to offer fast service and quality food at affordable prices establishing itself as the long-time leader in fast food, with an estimated revenue of $1,570,014,899 (EBSCOhost) in Australia. Strengths 1. Internationally known 2. Large market share 3. Accessibility 4. Ability to target different markets 5. Strong partnerships with other brands 6. Recognisable logo 7. Low prices Weaknesses 1. Unhealthy food menu 2. Similarities to other companies 3. Sometimes negative re... ... middle of paper ... ...dustry revenue, Industry report, IBISWorld, viewed 15 April 2014, retrieved from IBISWorld Database Cahill, J 2014, ‘McDonald’s dollar menu: Dividends, buybacks’, Crain’s Chicago Business, 37, 14, p. 0004, Regional Business News, EBSCOhost, viewed 16 April 2014 Gargano, S 2014, Menu manoeuvres: Operators introduce healthier food options to boost revenue, Industry report, IBISWorld, viewed 15 April 2014, retrieved from IBISWorld Database Gough, A 2014, ‘Bite on Maccas,’ Courier-Mail, 6 April IBISWorld 2014, Fast Food Services, Industry report, IBISWorld, viewed 15 April 2014, retrieved from IBISWorld Database IBISWorld 2014, McDonald’s Australia Holdings, company report, viewed 16 April 2014, retrieved from IBISWorld Database ‘McDonald’s Australia Holdings Limited’, n.d., n.d., Company Information, EBSOhost, viewed 16 April 2014.
In today’s world even with the economy suffering and individual income declining, the food industry is still up and running. Chain restaurants, mom and pop establishments, and fast food restaurants that are learning to market their products cheaper and more reasonable to the consumer are still going strong in the United States. They are offering healthier meals due to the consumer wanting to become healthier. They have their ups and downs like any business but are learning to give the consumer what they need and desire. That is the way restaurants keep their customer happy, by buying products from company like Sysco, Gordon’s Food Service, (GFS), and other restaurant suppliers. However; Sysco is the number one supplier to restaurants and hospitals, making them the most profitable company in the world (Sysco.com, 2011).
Healthier and Diversified Menus In a world where consumers are more aware of what they consume, it is vital that Tim Hortons exploits all opportunities in order to stay ahead of their competition, especially when it comes to healthier menus. Before people used to count burgers but now they count calories. Non-fat products need to be developed and need to be introduced into Tim Horton’s line of products. The range of products need to grow to encompass the broad range of customers.
T., Kraak, V. I., 2005, p.153). The book will be used in the sections where food industry and advertising could change their marketing toward healthy choices to help reducing and preventing
The corporation I chose to discuss is McDonald’s. McDonald’s is a publicly traded corporation that includes the following domestic companies, McDonald’s, Chipotle Mexican Grill, and Boston Market. This paper will discuss the following:
A world without the Big Mac, Happy Meals, Chicken McNuggets, and the phrase “I’m lovin’ it,” is almost inconceivable. People around the globe have become accustomed to the high gleaming golden arches that make up the famous emblem for McDonald’s. McDonald’s has grasped the concept that culture flows from power. In this case, the American culture flows through the veins of this fast-food giant and the more that is supplied, the greater the demand. It is no secret that McDonald’s has become one of the world’s largest fast-food retailers. It has become a well known icon that has played a huge part in globalization, with chains located in many different countries… transforming the meaning of fast-food all around the world.
According to Royle (1999) McDonald’s is a very large multinational enterprise (MNE) and the largest food service operation in the world. Currently the company has 1.5 million workers with 23,500 stores in over 110 countries with the United Kingdom and Germany amongst the corporation’s six biggest markets, and over 12,000 restaurants in the United States. In 1974 the United Kingdom corporation was established and in 1971 the Germany corporation was established, currently the combined corporation has over 900 restaurants and close to 50,000 employees in each of these countries (Royle, 1999).
Analysing McDonalds (fast food outlets) using Porters 5 Forces model – sometimes called the Competitive Forces model. Introduction McDonalds Canada opened in 1967, thirteen years after McDonalds had taken the United States by storm. This was the first restaurant to be opened outside of the United States. It was in 1965 that McDonalds went public and offered shares on Wall Street. Since then, it has been important for McDonalds to continually monitor its performance, to make sure it is competitive and profitable while also being aware of its immediate community responsibilities.
McDonald's also focuses on the perception of value within it line of products and therefore takes care to price its menu items accordingly. Different products are priced differently depending on which target audience those items appeal to most. An extensive value menu is an essential part of any fast-food menu in recent years. The prices and products within the value menu can prove to be areas that will make or break a fast-food companies' year depending on the competitions value menus.
McDonald’s established a name for themselves by offering quality food and fast, friendly service. This is a very important concept in the fast food industry. Once they established themselves to the consumers and became more visible, they created more demand, which lead to a greater revenue for them.
A franchisee, an affiliate, or the corporation operates a McDonald’s restaurant. Thus, McDonald's Corporation revenues come from the rent, royalties, and fees paid by the franchisees or sales in company-operated restaurants. According to Yahoo Finance report, McDonald's Corporation had annual revenues of $27.5 billion, and profits of $5.5 billion (McDonald’s 2014). McDonald’s primarily sells hamburgers, cheeseburgers, chicken snacks, french fries, breakfast items, soft drinks, milkshakes, and desserts. In response to changing consumer tastes, the company has expanded its menu to include salads, fish, wraps, smoothies, and fruit. Their food caters to all age groups, and they have a special menu known as “happy meal” that is targeting children.
Editorial. Nations Restaurant News 11 Nov. 2005: n. pag. MasterFILE Premier. Web. 5 Mar. 2013.
McDonalds has always been a leader in the fast food industry. Through its dynamic market expansion, new products and special promotional strategies, it has succeeded in making a name for itself in the minds of the target customers. However, McDonald’s earnings has declined in the late 1990’s and 2000s. This is mainly due to a fiercely competitive industry and variety in customer tastes and preferences.
A change in consumers’ tastes – the food in this market may become unappealing to consumers as obesity and cardiovascular diseases rise in New Zealand. This would put people off as quick service foods are regarded as unhealthy.
McDonald’s has proven over time that the business practices they utilize work well and have led them to obtaining the title of the largest food retailer in the world. The founder of the company made a tactical decision in franchising the idea of providing fast food at a cheap price. Today, fast food has become a staple of not only American life but a viable food option all over the world. For McDonald’s a critical factor in them reaching the level of growth they currently experience has been franchising. It can be assured that McDonald’s will continue to grow through the usage of the franchising techniques as new food markets continue to develop all over the world.
CHANGING PREFRECE depended vastly on the fast food manus. For example we can mention about SALAD. Now salad was never considered as a part of fast food menu. But with the change of taste and preference, fast food chains like Windy, Taco Bell, and McDonald have introduced SALAD into their menus. This preference is not stopping only with salads. In 2002, McDonald’s introduced great tasting new products including premium salads, n salads plus menu; Chicken McNuggets made with white meat; Fish McDippers; Chicken Selects; and new breakfast offerings like the McGriddle sandwiches. Here as a fast food chain, McDonald did not have to introduce new dishes in their menus but with the impression and image in the market analysis, of increasing demand and chan...